Vietnam has comparative advantages in digital transformation

July 23, 2020 | 09:50 am GMT+7

Vietnam has great potential, which will help digital transformation proceed quickly and with fewer risks than many other countries.

 A report from We Are Social and Hootsuite showed a high proportion of internet and mobile phone users. Vietnam has 96.9 million people, but has 145.8 million mobile phone subscribers (150 percent of population), 68.17 million internet users and 65 million social network users.


Around 94 percent of Vietnamese own mobile devices, 65 percent use laptops and desktop computers, and 22 percent use tablets.

Demand for mobile services and internet has been increasing rapidly.

Meanwhile, because of the stiff competition, businesses have to carry out digital transformation in order to grow and compete with rivals.

A survey conducted in Asia Pacific by Microsoft found that the impact of the digital transformation on GDP would be 60 percent in 2021.

Meanwhile, a study by Google and Temasek predicted that Vietnam’s digital economy may have value of $30 billion by 2025.
Another report of Data 61 from Australia showed that Vietnam would obtain $162 million more in GDP in the next 20 years if it successfully carries out digital transformation.

Vietnam also has advantages in the labor force. According to the 2019 Ministry of Information and Communication’s (MOC) report, Vietnam had more than 30,000 businesses in ICT, 955,000 workers, and 80,000 university graduates majoring in information and communications technology (ICT).

Vietnam also has the low risks. The information systems of Europe and the US are all large-scale, so high risks exist when adjustments are made to digitize business stages, especially the core system.

The systems in Vietnam are less prone to problems related to systematic risks. That is why experts believe that digital transformation in Vietnam could be carried out in a faster and safer way.

There are many well known names in the digital transformation market, such as IBM and Google. Vietnamese technology firms are also good choices for technological solutions.
These include FPT, the largest Vietnamese IT group, with many technological products that provide solutions to digital transformation, specifically suitable to Vietnam’s businesses.

FPT has launched a set of optimization solutions that help businesses increase productivity, save costs, and make the most of resources to overcome a crisis.

The set of solutions includes akaBot, which automates some repeated activities, which helps save 90 percent of time and 60 percent of operations, and increase ms productivity by 80 percent; and FPT AI, a chatbot with natural conversational ability.